Focusing on 6 regions
Over the years Arla has built a strong position in Northern Europe and the Middle East, where Arla is the preferred dairy company for consumers and where Arla's brands are among the strongest in the food industry. In that same period, Arla has also begun to build a business in new growth markets such as China, sub-Saharan Africa and Russia. Arla will continue to build on these market positions as it focuses its growth ambitions on the following 6 markets: Europe, the Middle East, China, Russia, Nigeria and the USA. In Europe, Arla's lead markets are the UK, Sweden, Denmark and Germany. "We have identified the markets in which Arla has the biggest potential to grow a long-term profitable business for our farmer owners. We are stepping up our efforts in the United States and Nigeria, while continuing to build on our positions in Europe, the Middle East and China. We also remain hopeful that Russia will re-open for business, at which point it will still be a very attractive market for Arla," says Peder Tuborgh. "We are not pulling out of any markets that are not mentioned, but we will focus our innovation, investments and competences on those lead markets. Over the coming 5 years we expect about half of our growth to come from outside the EU as we grow market shares while the other half will come from within the EU as we grow in key categories and add value through innovation," he adds.
Winning as one efficient Arla
Over the past 5 years Arla grew significantly in Europe with no less than 6 mergers in Central Europe, the UK and Sweden and the past few years have been spent aligning the different companies into one and harvesting the synergies that the mergers created. In Good Growth 2020 Arla will now take this unity to the next level. "We are a different company to the one we once were. The last few years have prepared Arla to take the role of a global food company, and the benefits will be reaped over the coming years. Going forward, our entire supply chain will be more efficient as we will establish one European milk pool to ensure a more holistic use of our milk across the Arla group. You will see our branding and marketing becoming more global, improving the spend effectiveness, and you will see Arla driving more radical innovation across borders," says Peder Tuborgh.